Garg was speaking ahead of the third annual meet of the Beijing-headquartered multilateral lending institute AIIB, which is being hosted by India.
Asian Infrastructure Investment Bank (AIIB) will invest $100 million in National Infrastructure Investment Fund (NIIF) soon and another tranche of the same amount will follow, Economic Affairs Secretary Subhash Chandra Garg said on Sunday.
Garg was speaking ahead of the third annual meet of the Beijing-headquartered multilateral lending institute AIIB, which is being hosted by India.
"$100 million will be invested in NIIF (National Infrastructure Investment Fund) and another $100 million will also follow. This will be in fund of fund…," Garg told reporters.
NIIF, a quasi-sovereign wealth fund, was set up by the Centre in 2015 for funding commercially viable greenfield, brownfield and stalled projects.
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The corpus of the fund is proposed to be Rs 40,000 crore, where the government would invest 49% or an amount equivalent to nearly Rs 20,000 crore.
NIIF will raise third party capital for the remaining Rs.20,000 crore from long term international investors, such as sovereign wealth funds, insurance, pension funds and endowments among others.
The fund has been set up as a fund of funds structure with an aim to generate risk adjusted returns for its investors, along with promoting infrastructure development and technology through investments.
In January, NIIF made its first investment, partnering with DP World to create an investment platform for ports, terminals, transportation and logistics businesses in India.
Danny Alexander, Vice President, AIIB, who was also present at the event, said that AIIb has approved 25 projects in the last two years, out of which six projects worth $1.2 billion were in India.
The third annual meeting of the Board of Governors of AIIB will be held at Mumbai during June 25-26. India is AIIB’s second-largest shareholder with around 8 percent stake and is also a major recipient of loans from the bank that focuses on infrastructure projects primarily in Asia.
AIIB commenced its operation in January, 2016 and aims to improve economic and social development in Asia by investing in high quality, financially
Prime Minister Narendra Modi along with Finance Ministers of 86 member countries are expected to participate in the two-day event.